Office leasing activity on a trailing 12-month basis has positioned itself above the historical low point reached in the first quarter of 2021. However, volume remains depressed when compared to pre-pandemic activity and the trend stands in stark contrast to space being returned to the market. Companies continue to shrink their office footprints, which has pushed the amount of sublet square footage available to 2.3 million SF, equating to a sublet availability rate of 2.0%. As a result, net absorption, at -310,000 SF year over year, remains firmly in the red. This push and pull effect suggests Portland’s journey to recovery in the office sector isn’t likely to take linear form. The latest market report has more data about the current market trends.

Office Capital Markets Report

Over the past decade, Portland’s dynamic economy and strong cumulative rent growth had heightened the metro’s profile as an investment market. However, pricing growth is likely to be somewhat restrained in the near term, as buyers and lenders seek to understand the emerging dynamics in a newly mobile office workforce. Average pricing has held steady in the limited trading taking place, with office assets trading for a market price of around $310/SF. The latest capital markets report

It’s always a good time to be proactive and think creatively about your business needs. If you have any questions about your lease, or curious about your options, send me an email, or call me to discuss your concerns, I am here to help.